The CEO of the Panama Canal, Ricaurte Vásquez Morales, denied President-elect Trump’s claim that the waterway is under the control of China, stating that “China has no involvement whatsoever in our operations” and that “rules are rules, and there are no exceptions.” Morales emphasized that the Panama Canal is run strictly on a neutral basis, without favoritism towards any particular country, and that any suggestion that China is in control would be a violation of international law.
Trump made the claim while speaking at a news conference at Mar-a-Lago, where he expressed his intention to “use military or economic coercion” to gain control of the Panama Canal, which he claims is being “operated by China.” Trump also criticized the 1979 Torrijos-Carter Treaties, which ceded control of the canal to Panama, calling it “a big mistake.”
Morales’ denial of Chinese involvement in the Panama Canal is not the first time the Panamanian government has made such a claim. In 2022, President José Raúl Mulino dismissed a similar claim by Trump, stating that “there is not a single Chinese soldier in the canal” and that it is “Panamanian and belongs to Panamanians.”
The issue is significant due to the Panama Canal’s strategic importance, as 5% of global commerce passes through it. In 2022, the U.S. Department of Defense expressed concerns over China’s investments in shipping ports around the world, including in Panama, where the Chinese government has invested in projects related to the canal.